scholarly journals The fair value of the innovation. A proposal for determine it

2020 ◽  
pp. 5-11
Author(s):  
Alejandro Ramírez-Barajas ◽  
Nélida Carmona-García ◽  
Ma. Leticia Almanza-Serrano
Keyword(s):  
Financial Reporting ◽  
Net Present Value ◽  
Fair Value ◽  
Intangible Asset ◽  
Generation Process ◽  
Financial Reporting Standards ◽  
Market Participants ◽  
Exchange Value ◽  
Economic Entity ◽  
Valuation Technique

According to the NIF Financial Reporting Standards, fair value represents the exit price that, at the valuation date, would be received for selling an asset or paid for transferring a liability in an orderly transaction between market participants. When there is no accessible exchange value of the operation, an estimate must be made using valuation techniques. In other words, fair value is the price at which a tangible or intangible asset is sold / bought between two economic entities on a voluntary basis. Even if there are complications to determine it, it must be estimated by applying valuation techniques. But what happens when the asset object of fair value is not the subject of a transaction between two economic entities? That is, what happens when the asset is the result of an internal generation process of the economic entity, such as an industrial design on which a patent can be generated? How is fair value determined in this case? This article contains the analysis of the concept of fair value contained in the financial information standards and a proposal for its determination in the case of assets generated internally in economic entities as a result of innovation projects, considering for this purpose the valuation technique of the net present value NPV.

Accounting Concepts in Company Law

2021 ◽  
Vol 18 (3) ◽  
pp. 398-427
Author(s):  
Jesper Seehausen
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Company Law ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Eu Legislation ◽  
Starting Point ◽  
Pros And Cons

Abstract Taking as a starting point Peter Hommelhoff’s argumentation that accounting law is, in many respects, linked to company law, the purpose of this article is to discuss one perspective of the links between accounting law and company law: accounting concepts in company law. After a brief outline of the existing EU legislation on accounting and a discussion on whether accounting law is part of company law, some examples of accounting concepts in company law – i. e. examples of accounting concepts that have been ‘implemented’ in company law – are discussed, drawing on the Consolidated Company Law Directive (CCLD) and the Shareholder Rights Directive (SRD 2) as well as the International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS). These examples are related party transactions, consideration other than in cash and fair value, serious loss of the subscribed capital as well as a few other examples. It is also discussed whether accounting concepts in company law are a ‘good’ or a ‘bad’ thing. Balancing the pros and cons, in the author’s opinion, it is mostly positive that accounting concepts are used in company law in areas where this makes sense – and hence, in the author’s opinion, accounting concepts in company law are mainly a ‘good’ thing.

scholarly journals Fair Value Accounting: Implementation Challenges Facing Small and Medium-Sized Entities in the Agricultural Sector

2018 ◽  
Vol 8 (4) ◽  
pp. 60
Author(s):  
Joseph Kwasi Agyemang ◽  
Owusu Acheampong ◽  
Wiafe Nti Akenten
Keyword(s):  
Financial Reporting ◽  
Agricultural Sector ◽  
Fair Value ◽  
International Standards ◽  
Reporting Standards ◽  
Fair Value Accounting ◽  
Implementation Challenges ◽  
Financial Reporting Standards ◽  
Regulatory Bodies ◽  
Value Reporting

Nowadays, the relevance of fair value in financial reporting is gaining impetus and recent discussions are moving in the trend of full fair value reporting. Small and medium-sized entities are not ignored in this instance. The move to new reporting standards results in various challenges for different interest groups such as auditors, preparers and regulators. The main objective of the study was to establish the fair value implementation challenges facing SMEs in the agricultural sector with evidence from regulatory bodies in Ghana. The study established that there is lack of methodological relationship between existing local laws and IFRS and absence of involvement of regulatory bodies in financial reporting standards setting. In light of these challenges, the study recommends involvement of regulatory bodies in standard setting and consideration should also be given to local laws when setting international standards.

Using arguments and myths to lobby over controversial accounting issues: evidence from Japan

2020 ◽  
Vol 32 (3) ◽  
pp. 355-390
Author(s):  
Noriyuki Tsunogaya ◽  
Andreas Hellmann
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Accounting Standards ◽  
Fair Value ◽  
Network Effect ◽  
International Accounting Standards ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Stakeholder Groups

Purpose This study aims to examine the (overt) arguments and (covert) myths the Business Accounting Council (BAC) members have used to lobby over controversial accounting issues, such as the application of fair value accounting (FVA) and the adoption of International Financial Reporting Standards (IFRS) in Japan. Design/methodology/approach The authors used a content analysis to examine 85 statements included in multiperiod BAC meeting minutes and 68 articles prepared by International Accounting Standards Board (IASB) representatives from Japan. Findings The results reveal that together with the arguments, myths were created and amplified by opponents of FVA and the Financial Services Agency to hide the latter’s strong regulatory power. They created these myths, using covert stories of the importance of manufacturing activities and tax accounting (for small- and medium-sized enterprises [SMEs]), to oppose mandatory IFRS adoption in Japan and, thus, to maintain vested rights in preparing the Japanese generally accepted accounting principles and Japanese accounting standards for SMEs. Originality/value First, this study contributes to the lobbying literature by focusing on the coalition (network) effect of influential stakeholder groups. Second, although lobbying activities have been investigated mostly using comment letters, this study reviews multiperiod BAC meeting minutes and articles prepared by IASB representatives from Japan. Third, the study examines both overt arguments and covert myths, both of which are important in unmasking the fundamental structures of power within influential organizations, such as government agencies and standard-setters.

Rekindling the Debate: What’s Right and What’s Wrong with Masters of Accountancy Programs: The Staff Auditor’s Perspective

2010 ◽  
Vol 25 (2) ◽  
pp. 215-226 ◽  
Author(s):  
Thomas J. Frecka ◽  
Philip M. J. Reckers
Keyword(s):  
Financial Reporting ◽  
Professional Education ◽  
Fair Value ◽  
Accounting Education ◽  
University Education ◽  
Financial Reporting Standards ◽  
Curriculum Changes ◽  
Societal Needs ◽  
Global Commerce ◽  
Level Of Satisfaction

ABSTRACT: Global commerce has undergone massive changes over the last two decades. No less so has the worldwide public accounting profession. We have seen two market crashes in the span of eight years, a host of financial reporting fiascoes, and the demise of Arthur Andersen. Historical cost-based accounting is giving way to fair-value accounting, and International Financial Reporting Standards are replacing national rules and regulations. And, yet, not since the Accounting Education Change Commission 20 years ago has there been a significant nationwide dialog regarding changing societal needs and the adequacy of our collegiate accounting programs to meet those needs. With this void in mind, the Education Committee of the American Accounting Association launched in 2008 an initiative to ignite a nationwide dialog of practitioners, academics, and other prominent stakeholders to assess the quality and level of satisfaction with current Master’s of Accountancy programs, the relevance of current coursework, and to identify and prioritize future curriculum initiatives. The first phase of that initiative was a survey conducted in the late spring of 2009 of more than 500 recent graduates of Master’s of Accountancy programs (auditors with two to six years experience); this article reports the findings of that survey. In a nutshell, these young auditors were asked what was right and what was wrong with Master’s of Accountancy programs from their perspective. This is a first step in a larger effort to help give direction to program revisions that would best serve the interests of students, the profession, and society. The purpose of the survey is not to definitively resolve outstanding controversies but rather to encourage further necessary debate. Various interpretations of the findings of the survey are inevitable, invited, and welcome. To that end, it is the authors’ intent to raise as many questions in the following pages as those resolved. Over the last decade academics have witnessed an endless litany of suggestions for curriculum changes from individuals, committees, associations, and firms. Unfortunately, those many recommendations have often been conflicting and provide limited, if any, prioritization of what to add to existing curricula and what to withdraw. Furthermore, we acknowledge that while this article does not provide a substantive discussion of the necessarily complimentary roles of university education, continuing professional education, and on-the-job training, such issues must be included in future dialogs.

scholarly journals Valuation of Biological Assets at Fair Value

2019 ◽  
Vol 13 (3) ◽  
pp. 59-70
Author(s):  
A. O. Beryoza
Keyword(s):  
Financial Reporting ◽  
Foreign Market ◽  
Fair Value ◽  
World Market ◽  
International Standards ◽  
Information Support ◽  
Accounting Systems ◽  
Investment Projects ◽  
Financial Reporting Standards ◽  
The World

Today the globalisation of the world market leads to the necessity of constructive interaction in the international market and forming common standards of accounting. Transnational corporations as a phenomenon of worldwide integration are businesses with units in different countries of the world. Special issues of information support of management in agricultural organisations have become very important in the conditions of the market economy. Clear and transparent accounting in such enterprises requires the existence of common international standards. Such standards could become International Financial Reporting Standards (IFRS). They are designed to provide an understanding of financial processes in different countries for the interaction between investors and potential investment projects located in different national accounting systems. The standard “Agriculture” has great importance for the Russian Federation. Agriculture is one of the leading sectors of our country, supplying products for both domestic and foreign market. Accordingly, the adoption of this standard and the implementation of its provisions is an important and urgent issue of today’s economic reality. Introduction of this standard leads to the formation of fundamentally new methodological bases of the accounting of agricultural activities based on the market value of assets because paragraphs 12–13 of this Standard states that during the initial and subsequent valuation of biological assets will be measured at their fair value fewer costs to selling. Thus, the need to allocate biological assets in the separate account-economic category, their reflection in the accounting at fair value by the provisions of IAS 41 has determined the relevance of the topic, goal, objectives and logic of the article.

scholarly journals El modelo de valor razonable: La aproximación de las cifras contables a los valores de mercado (The fair value model: The aproach of the accounting figures to the market values)

2014 ◽  
Vol 8 (3) ◽  
pp. 41
Author(s):  
Eduardo Sosa Mora
Keyword(s):  
Financial Reporting ◽  
Theory Of The Firm ◽  
Financial Statements ◽  
Fair Value ◽  
Reporting Standards ◽  
Market Prices ◽  
Financial Reporting Standards ◽  
Market Values ◽  
Future Events ◽  
Value Model

<p>Desde hace muchos años, en el ámbito académico y en el profesional de la contabilidad, se debate acerca de la importancia de que los estados financieros presenten los activos y pasivos de acuerdo con sus valores de mercado, con el fin de lograr una mejor aproximación a los valores económicos de las empresas. Esto ha propiciado que, en las Normas Internacionales de Información Financiera (NIIF), haya adquirido relevancia el modelo del valor razonable, según el cual los activos y pasivos se miden por sus valores <br />de mercado. La adopción de este modelo significa la instrumentación de la teoría del valor de la empresa y una mayor aproximación de la contabilidad a la teoría de las finanzas, cuyos beneficios deben sopesarse con los riesgos asociados a la obtención de cifras contables a partir de precios de mercado y de supuestos acerca de eventos esperados en el futuro. Este artículo expone los alcances de la adopción de ese modelo en el esfuerzo por lograr que los estados financieros representen fielmente las realidades económicas de las empresas.</p><p> </p><p><strong>Abstract </strong></p><p> </p><p>Since many years ago in the Accounting academic and professional circles there is a debate about the importance that the financial statements represent the assets and liabilities according with their market values, in order to get a better approximation to the economic values of the enterprises. Because of this the fair value model has gained relevance in the International Financial Reporting Standards (IFRS). According with this model, the assets and liabilities are measured by their market values. The adoption of <br />this model means the implementation of the theory of the firm and a greater approximation the Accounting to the Financial Theory, whose benefits must be weighted with the risks of getting accounting figures by using market prices and assumptions about future events. This paper expounds the scopes of adopting this model in the effort to assure that the financial statements represent faithfully the economic realities of the enterprises.</p>

scholarly journals ANALISIS BIAYA DAN MANFAAT ALIRAN KAS INVESTOR: TELAAH LITERATUR KEWAJARAN DARI NILAI WAJAR

2019 ◽  
Vol 4 (2) ◽  
pp. 49-65
Author(s):  
Frida Fanani Rohma
Keyword(s):  
Financial Reporting ◽  
Fair Value ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Primary Users

IFRS (International Financial Reporting Standards) menekankan penyajian informasi berdasarkan nilai wajar (fair value) yang dinilai mampu meningkatkan relevansi. Beberapa literatur dan hasil penelitian empiris mengkaji masalah pengukuran dan perubahan informasi akuntansi berdasarkan nilai wajar dalam meningkatkan relevansi informasi. Namun, hal tersebut masih menjadi kontroversi. Artikel ini bertujuan untuk melakukan analisis kewajaran dari nilai wajar dengan tolok ukur penyajian yang seharusnya dan kebermanfaatan informasi berdasarkan sudut pandang seluruh pihak yang berhubungan dengan laporan keuangan, tidak hanya primary users. Hasil telaah menunjukkan “kewajaran” dari nilai wajar membantu meningkatkan relevansi, namun kemampuan prediksi dan tujuan utamanya untuk mendapatkan respon harga investor masih menjadi masalah yang perlu dipertanyakan, sehingga pertimbangan biaya dan manfaat nilai wajar masih perlu diperhatikan untuk mencapai tujuan “kewajaran” dari nilai wajar.

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